This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Fast Money' Recap: Banking on Financial Stocks

NEW YORK (TheStreet) -- The S&P 500 rallied 0.60% on Thursday after Wednesday's slight selloff in response to the Federal Reserve.

On CNBC's "Fast Money" TV show, the trading panel was discussing the financial stress test results, where 29 of the 30 tested banks exceeded expectations. 

Brian Kelly, founder of Brian Kelly Capital, said he would not short-sell the financial sector but did say he would take profits on Friday. 

Pete Najarian, co-founder of and, said he doesn't foresee much of a pullback in the financial sector. He added the options activity was very, very bullish for the Financial Select Sector SPDR ETF (XLF). He liked Citigroup (C) and Bank of America (BAC)

Must Read: 'Fast Money' Recap: Tech Talk

Jon Najarian, co-founder of and, said longer-term investors could hold bank stocks for the next year or two because interest rates will continue to rise, which will improve profitability. 

Guy Adami, managing director of, said that investors could add to their long Citigroup position, because it is still undervalued. 

Although bullish, Pete Najarian admitted he took some profits in the financial sector but he remains long overall. 

Zions Bancorporation (ZION) was the only bank to fail the stress test but traded surprising well on that news, according to Adami. He added the stock could actually trade higher on Friday. 

With dividend hikes expected, stress test results released and interest rates set to rise in the future, Kelly questioned what the next catalyst would be to push bank stocks higher. 

Dick Bove, bank analyst at Rafferty Capital Markets, said the banking industry is producing record profits while simultaneously maintaining the strongest balance sheets these banks have ever had. 

He added that these companies have the capacity to substantially increase loan growth, which, coupled with higher interest rates, would drive earnings per share growth. He concluded these banks have the capacity to raise dividends for the next several years, not just this year. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs